SEC extension of Union Bank’s Rights Issue

Securities and Exchange Commission Nigeria (SEC) has approved the extension of Union Bank Plc’s Rights Issue billed to have ended on January 20. The offer has now been extended to February 10, 2012. According to a statement from Head, Corporate Affairs Department of the Bank, Mr Francis Barde, the need to extend the strike stemmed from protests by the Nigeria Labour Congress (NLC), the Trade Union Congress and the Civil Society Groups over the removal of the subsidy on fuel. “The strike slowed us down and make it impossible for most of our shareholders to take their Rights,” he noted.
Union Bank is offering about 1.41 billion ordinary shares of 50 kobo each at N6.81 per share in the ratio of five new ordinary shares for every nine ordinary shares held as at October 21, 2011. The application list opened on December 14 2011 and would now remain open till February 10, 2012.
Already, parties to the Union rights issue including the issuing houses, registrars, stockbrokers and officials of the bank in the latest update on the rights have expressed confidence that the issue would be a huge success.
Speaking on the prospects of the Rights Issue being oversubscribed, Managing Director, Union Capital Markets Limited, the joint issuing house to the rights issue, Mr. Tunde Yamah, said shareholders would be fully allotted their shares and any application for additional shares would be considered, if there is renouncement.